11 steps for the perfect money mindset

11 characteristics of successful investors

In this article, I will summarize eleven such characteristics under the term “Money Mindset.”

Photo by Austin Distel on Unsplash

#1 Positive setting

It helps, in any case, to look positively into the future. For one thing, it enables you to get over temporary setbacks more quickly.

On the other hand, it is simply more fun to concentrate on positive aspects such as interest, dividends, compound interest, yield, etc.

Instead of thinking mainly about the negative sides such as taxes, inflation, or price fluctuations.

However, it makes little sense (and certainly quite strenuous) to think exclusively positive.

After all, what life is all about is variety: the succession of profit and loss, success and failure, happiness, and unhappiness.

Of course, the positive sides should outweigh the negative in the long run. But it takes terrible times from time to time to recognize the good ones as such in the first place.

#2 Courage to take risks

It seems like a law of nature: return is nothing more than the reflection of the risk associated with a particular form of investment.

Risk-free capital investments can never and will never exist. Because absolute security would mean the exclusion of chance.

But that is not the way the world works.

So if you want to be successful in investing, you need some courage to take risks. But also not too much of it. At least not so much that greed gets the upper hand.

Because, of course, the prospect of a (high) profit is motivating. That’s why you should always think about things soberly:

What can go wrong with this investment? What risks do I have to keep in mind?

#3 Decision making

Successful people quickly come to a decision. And change their mind slowly, if at all.

Unsuccessful humans, however, decide, if at all, only very slowly. And change for it regularly their opinion.

It is not enough, however, to think only about Investments.

At some point, you have to decide how you want to invest your money. And you should stand by this decision.

By the way: Deadlines almost magically increase your power of decision.

Whenever it comes to putting a project into action, set yourself a deadline!

#4 Pragmatism

Pragmatists are people who can also “let five go straight.” They concentrate on the essentials and thus have it more comfortable in life.

Perfectionists, on the other hand, are masters of planning with a love of detail. They have a hard time getting the hang of it.

One is never “finished,” never knows enough, never understands everything down to the last detail.

This drives perfectionists crazy. Because there’s always a detail somewhere that you might have overlooked…

But an investment decision does not have to be perfect. It is sufficient if it is good enough to achieve the goal you have set yourself.

And that brings us to the next point:

#5 Target orientation

The author Napoleon Hill states in his order Think and become rich:

A fundamental principle of success is merely knowing what you want.
Sounds simple.

But the truth is that for many people, the first major hurdle on the road to financial success is already lurking here.

After all, it’s not that easy to find answers to life’s big questions:

What do I want to achieve? What is my goal? What am I prepared to make an effort for?

But only if you know your goal, will you set out on the right path to achieve it.

#6 Self-efficacy expectation

A characteristic closely linked to optimism is the so-called self-efficacy expectation:

People with a high expectation of self-efficacy are convinced that their fate is mostly in their own hands.

They do not blame external circumstances, other people, coincidence or pure luck for the course of events.

Successful people do everything they can to influence the course of their lives by acting independently and making decisions (see point 3).

#7 Persistence

Stamina is another essential factor on the road to financial success.

Many people start with high ambitions, but drop their goals at the slightest failure and give up.

The successful ones, on the other hand, keep on going despite all adversities until they have reached their goal.

By keeping their wishes and goals in mind, they succeed in keeping their will power always high.

“With perseverance comes success. There is no substitute for perseverance. Its lack cannot be compensated by any other quality!” — Napoleon Hill

#8 Self-discipline

Self-discipline is needed above all in controlling consumer behavior.

Because if everything that comes in goes out, there is nothing left to invest. And then it logically becomes challenging to build up assets.

So make it a habit to put a certain percentage of your income on the side every month.

An essential rule in this context is: save first and then consume.

So put money aside at the beginning of the month and then spend the rest. Not the other way around.

#9 Willingness to learn

Successful people never stop expanding their skills. Their thirst for knowledge is almost insatiable.

Based on their continually growing knowledge and experience, successful investors make better and better investment decisions over time.

One characteristic that goes hand in hand with the willingness to learn is an openness to new things:

Successful people appreciate the tried and tested, but are happy to embrace new things.

This is the only way they can discover opportunities and make the most of them …

#10 Self-reflection

Another essential characteristic is the ability to take a critical look at oneself:

What can I do and what can I not do? Where are my limits?

Only those who can correctly assess their competencies and incompetencies will make the right investment decisions.

Because he or she avoids costly mistakes and, in case of doubt, is modest …

I know I don’t know. — Socrates

#11 non-conformity

Successful people often swim against the current. They do not make the behavior of the masses the yardstick for their actions.

Especially those who want to be successful in the stock exchange have to break away from the mainstream.

On the one hand, from the majority of non-shareholders, who consider an investment in securities to be a stupid idea.

And on the other hand, from the mass of investors who follow the trend and buy when everyone is buying. And sell when everybody sells.

Unfortunately, herd animals do not have good cards to play when investing…

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11 steps for the perfect money mindset was originally published in The Capital on Medium, where people are continuing the conversation by highlighting and responding to this story.

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